The rupee on Friday bounced back by ten paise to end at 68.62 against the American currency on fag-end selling of dollars by banks and exporters on the back of recovery in the equity market.
The benchmark Sensex recovered 178 points to to close at 23,154.30 on fag-end buying ahead of the Union Budget after the Economic Survey projected the Indian economy to grow at 7-7.75% in 2016-17, which could accelerate to 8% in a couple of years.
Weakness of dollar in the global market also boosted the rupee value against the dollar, a forex dealer said. The domestic unit resumed lower at 68.73 per dollar at the Interbank Foreign Exchange (Forex) market as against the Thursday’s closing level of 68.72 and dropped further to 68.79 on initial month-end dollar demand from importers.
However, it recovered afterwards to end at 68.62 on fresh selling of dollars by banks and exporters on the back of recovery in the equity market, showing a gain of 10 paise or 0.15%.
It moved in a range of 68.62 and 68.79 per dollar during the day. The dollar index was down by 0.02% against a basket of six currencies in late afternoon trade.
The dollar was lower against the yen and the euro during Asia trade today, as jittery investors await a gathering of the world’s top finance officials over the weekend in China.
Market sentiment recovered as US stocks and oil prices gained overnight. Oil prices rose after Venezuela’s oil minister said the country would meet with Russia, Saudi Arabia and Qatar on efforts to stabilize oil markets.